Subsequent Events

9 Months Ended

Oct. 02, 2020

Subsequent Events [Abstract]

Subsequent Events

Note 17–Subsequent Events

Notes Issuance

On October 8, 2020, we issued and sold $1.0 billion aggregate principal amount of fixed-rate senior notes maturing in February 2031 (the "2031 Notes"). The 2031 Notes are senior unsecured obligations issued by Leidos, Inc. and guaranteed by Leidos Holdings, Inc. The 2031 Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

The proceeds from the 2031 Notes were used for general corporate purposes, including to repay all of the outstanding obligations in respect of principal, interest, fees and other amounts under the 364-day Term Loan and to repay a portion of the outstanding loans under the five-year Term Loan Facility.

Interest on the 2031 Notes is payable on a semi-annual basis with principal payments due at maturity. The annual interest rate for the 2031 Notes is 2.30%.